Nasdaq Wants Tighter Rules for Chinese Companies Over Pump-and-Dump Schemes

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Nasdaq Wants Tighter Rules for Chinese Companies Over Pump-and-Dump Schemes

Pedestrians walk past the Nasdaq headquarters in New York on July 2, 2002. Mario Tama/Getty Images

Nasdaq on Sept. 3 proposed rule changes aimed at combating pump-and-dump schemes that law enforcement warns have seen a 300 percent increase this year.

The exchange has submitted proposed rules to the Securities and Exchange Commission (SEC) that would establish several requirements for new listings. These include a minimum $15 million market value of public float under the net income standard, a minimum public offering proceeds requirement of $25 million for companies mainly operating in China, and a fast-tracking process for suspending and delisting companies whose market value falls below $5 million.

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